Photo credit:

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a two-decade holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Mohawk Industries, Inc. (NYSE: MHK)? Today, we examine the outcome of a two-decade investment into the stock back in 2001.

Start date: 06/07/2001


End date: 06/04/2021
Start price/share: $32.68
End price/share: $201.41
Starting shares: 306.00
Ending shares: 306.00
Dividends reinvested/share: $0.00
Total return: 516.31%
Average annual return: 9.52%
Starting investment: $10,000.00
Ending investment: $61,671.58

As we can see, the two-decade investment result worked out well, with an annualized rate of return of 9.52%. This would have turned a $10K investment made 20 years ago into $61,671.58 today (as of 06/04/2021). On a total return basis, that’s a result of 516.31% (something to think about: how might MHK shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more piece of investment wisdom to leave you with:
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” — Benjamin Graham